VZCZCXRO1867
PP RUEHDE RUEHDH RUEHDIR
DE RUEHYN #0981 1441019
ZNR UUUUU ZZH
P 241019Z MAY 09
FM AMEMBASSY SANAA
TO RUEHC/SECSTATE WASHDC PRIORITY 1980
RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE
INFO RUEHC/DEPT OF LABOR WASHDC

UNCLAS SANAA 000981 
 
SIPDIS 
 
NEA/ARP FOR ANDREW MACDONALD 
USAID FOR CHRISTOPHER KISCO 
 
E.O. 12958: N/A 
TAGS: ECON EAID PGOV YM
SUBJECT: YEMEN HARMONIZES UNEMPLOYMENT RATE WITH 
INTERNATIONAL FIGURES 
 
¶1.  SUMMARY.  In a departure from the past, the ROYG has 
announced that the unemployment rate reached 35 percent in 
2008, which is in line with statistics from international 
organizations.  The ROYG's report could symbolize a 
harmonization of government figures with 
internationally-recognized statistics.  ROYG acknowledgement 
of and agreement with internationally recognized unemployment 
rates could represent a step towards greater transparency in 
official statistics as well as more realistic policy 
assessment and implementation.  END SUMMARY. 
 
¶2.  In early May, the Ministry of Planning and International 
Cooperation (MOPIC) released its annual Economic Report, 
announcing that Yemen's unemployment rate reached 35 percent 
in 2008 as compared with 16.7 percent in 2007.  Prior to 
2007, ROYG reports have indicated that unemployment did not 
exceed 11 percent.  These figures contrasted starkly with 
figures from international organizations such as the World 
Bank, which have identified unemployment as high as 40 
percent. 
 
¶3.  The Economic Report may indicate a harmonization of ROYG 
figures with internationally-recognized statistics.  Hisham 
Sharaf Abdalla, Deputy Minister for International Cooperation 
at MOPIC, told EconOff on May 19 that this year MOPIC used a 
different method for calculating unemployment, which takes 
into consideration temporary unemployment of mobile workers 
as well as permanent unemployment of stationary Yemenis.  Ali 
Alabdulrazzaq, Senior Economist at the World Bank, suggested 
to EconOff on May 18 that the unemployment rate depends on 
the method used to calculate it, which could be as low as 16 
percent, using one method.  Nabil Shaiban, Director General 
for International Cooperation at MOPIC, told EconOff on May 
19 that the figures have been updated for 2008 and that "low 
participation in the labor force"*another measure for 
unemployment*has reached 39 percent. 
 
COMMENT 
------ 
 
¶4.  Official figures, which in the past have varied greatly 
across governmental ministries, have been long held suspect 
by international observers and cited as the basis for 
short-sighted policy decisions.  ROYG acknowledgement of and 
agreement with internationally recognized unemployment rates 
may represent a step towards greater transparency in official 
statistics, and an opportunity to develop a strategy based on 
concrete figures to counter unemployment.  END COMMENT. 
SECHE